Right to buy tenant plan to cost LLs £50 Billion

phillw

Cakeguts wrote: »

With Momentum in control you can guarantee that once they have got rid of the property owned by landlords they will start on people who live in houses bigger than Momentum think they need. Of course none of this will apply to Momentum or Labour party politicians they can continue to live in big houses worth close a £million in Islington.

Project Fear.

DannyGold

phillw wrote: »

Project Fear.

Exactly

Foreign property investors are selling up in the UK, and certainly not going to be buying anymore even as the long awaited correction comes.

Why buy to let in the UK if the government can force you to sell for way less than market value?

PasturesNew

It's unworkable and ridiculous. Nobody will buy something, to then be forced to "give it away" in X years' time.

Whether more will sell or not and whether rentals become scarcer is irrelevant because there will still be the same number of homes - and so more people will buy.

But nobody is going to buy something today, be fully and wholly responsible for it until such time as somebody can just swoop in and get it at a low price.

Anybody who can count to 10 could work that one out.

RealElement47

PasturesNew wrote: »

It's unworkable and ridiculous. Nobody will buy something, to then be forced to "give it away" in X years' time.

Whether more will sell or not and whether rentals become scarcer is irrelevant because there will still be the same number of homes - and so more people will buy.

But nobody is going to buy something today, be fully and wholly responsible for it until such time as somebody can just swoop in and get it at a low price.

Anybody who can count to 10 could work that one out.

Anybody who can count to ten can work out that the very proposal of such an idea is causing even more fear and uncertainty which will result in more downward pressure on property prices

Cakeguts

PasturesNew wrote: »

It's unworkable and ridiculous. Nobody will buy something, to then be forced to "give it away" in X years' time.

Whether more will sell or not and whether rentals become scarcer is irrelevant because there will still be the same number of homes - and so more people will buy.

But nobody is going to buy something today, be fully and wholly responsible for it until such time as somebody can just swoop in and get it at a low price.

Anybody who can count to 10 could work that one out.

In any event it would only work once.



Once all the decent properties had gone no landlord would invest in buying anymore so the next generation of renters would be stuck with nowhere to rent at all because the previous generation would still be living in all the houses that no one wanted to buy.

MobileSaver

DannyGold wrote: »

even as the long awaited correction comes.

When will this "long awaited correction" come and how will it manifest itself? 50% off by Christmas? Or is it more likely to be 5% or 10% off in a year or two?

RealElement47 wrote: »

will result in more downward pressure on property prices

Will this downward pressure result in a proper house price crash or just a temporary blip like last time?

chucknorris

PasturesNew wrote: »

Anybody who can count to 10 could work that one out.

That's Dianne Abbott out then, and obviously also John McDonnell.

Arklight

But, but, British property is meant to be a sure fire get rich quick scheme where people who own multiple houses get to trap people who can't afford even one into a lifetime trapped in renting!

How dare this be challenged!? The right of wealthy middle class people to do absolutely nothing while much poorer people pay their mortgages is inalienable. Since William the Conqueror stole the lands of the English commoners and made them rent them back in serfdom this noble tradition has continued!

Yeah, I don't think this would ever make it to legislation, mainly because of how many MPs are buy to let landlords themselves, but it might not do landlords any harm to squirm a bit. A few more properties on the market for families, and out of the hands of wannabe Rachmans wouldn't hurt either.

Cakeguts

Arklight wrote: »

But, but, British property is meant to be a sure fire get rich quick scheme where people who own multiple houses get to trap people who can't afford even one into a lifetime trapped in renting!

How dare this be challenged!? The right of wealthy middle class people to do absolutely nothing while much poorer people pay their mortgages is inalienable. Since William the Conqueror stole the lands of the English commoners and made them rent them back in serfdom this noble tradition has continued!

Yeah, I don't think this would ever make it to legislation, mainly because of how many MPs are buy to let landlords themselves, but it might not do landlords any harm to squirm a bit. A few more properties on the market for families, and out of the hands of wannabe Rachmans wouldn't hurt either.

Which rental market are you describing? This is not my experience. In the years that we have been letting property we have had two sets of tenants whose houses had been damaged by fire and who needed to rent somewhere while they were being repaired and we didn't have mortgages on either of those properties. Don't forget about the people who have to rent when their houses have been flooded and the people who rent before buying when they relocate. Not to mention the people who start a relationship and move into rented to see how it is going to go before they buy together. This is our rental market. These people are able to buy somewhere it just suits them not to do it at the present time.

phillw

I've not read the plan in detail, because I'm sure it will change anyway.
However I actually think there is something in there worth pursuing, even if it's not what they intend at the moment.

As an outline what they are suggesting is basically, if you sell your house to someone that rents it for a specific period then you get a discount on capital gains tax that you share with the person buying your house.

Cut out any automatic right and tweak the figures a bit and it seems like a good proposal.

More to the point, why haven't the conservatives proposed it? A lot of landlords feel trapped if they want to sell because selling because of the CGT bill.